The financial needs and position of people tend to change with time. As people grow old and settle into retirement, they would be at a stage when their body is also susceptible to different physical ailments. This is the time when they need to go regularly to the hospital and undergo various types of treatment that may sometimes cost a fortune. Fortunately these days you can find many leading insurers offering affordable special life insurance dedicated to the seniors, which would take care of most of their needs in their old age.
Remember it is not possible to substitute special life insurance dedicated to the seniors with any other investment or other type of insurance. This is because a life insurance product specially meant for seniors will take care of many different types of expenses such as funeral costs and any payment towards debts that a person may have accumulated, among others. A senior’s life insurance policy therefore offers a way to cover all such costs without putting any undue financial burden on their survivors.
Yet another advantage that you can get with a seniors life insurance policy is that you can secure a loan using it. Insurance companies on their part are coming out with many different insurance products specifically targeted at this segment of the population, realizing all their needs.
The internet is a good place to find special life insurance dedicated to the seniors quotes. You no longer need to call up and talk to various insurers in order to get insurance quotes. Getting insurance quotes is now only a few clicks away, thanks to the advent of the internet. You can always compare the various products meant for seniors available in the market and then make a decision. The internet is perhaps the best place to search for cheap special life insurance coverage dedicated to the seniors.
You can also talk to your insurance agent, who may be able to offer you valuable tips on senior’s life insurance products. They could for instance guide you on different aspects as the term of the insurance, the coverage, the benefits and the premium that you need to pay towards obtaining senior’s life insurance. One of the most important benefits that come along with a senior’s life insurance policy is that you need to pay a fixed premium, which would not increase. Similarly another important benefit that is guaranteed with a senior’s life insurance policy is death benefit. A senior citizen can also sell his or her senior’s life insurance policy and get some cash in turn too. Your insurance agent can give you valuable insights into all these aspects of a senior’s life insurance policy.
You should take your time and do a bit of research when shopping for senior’s life insurance. The internet, with a number of websites dedicated to the topic, in fact is be the best way to not only to get to know about the different insurance products for senior citizens but also to find cheap special life insurance coverage dedicated to the seniors.
People buy life insurance, auto insurance, medical insurance, house insurance and the like, which are normal and most companies sell them and many people purchase them. But there is another category of insurable and insured items which only a few have done and these are quite weird types of insurance.
Well-known people and film and TV stars are known to have insured their body parts. These public celebrities take no chance on getting any part of their body changed or disfigured and hence they buy insurance for it. These people depend on their bodies for their livelihood. And insurance companies offer insurance policies that will pay if something damages the appearance or the functionality of some body part.
Professional athletes too buy insurance. Peyton Manning has insurance on his right arm, it is reported. The following are some of the body parts that are known to have been insured:-
•Ken Dodd’s extremely big buckteeth for $ 7.4 million!
•13-year-old World Yo-Yo champion Harvey Lowe’s hands for $ 150,000!
•Australia’s cricket player Merv Hughes’ walrus moustache for $ 370,000!
•20th century Fox insured actress Betty Grable’s legs for $ 1 million each!
•Michael Flatley of Lord of the Dance and Riverdance for $ 47 million
•Food critic Egon Ronay’s taste buds for $ 400,000!
•Bruce Springsteen’s voice for $ 6 million
•Comedy partners Bud Abbott and Lou Costello for $250,000!
•Jennifer Lopez’s ass for $ 1 billion!
The list can go on increasing. We have tea taster’s nose and tongue being insured and so also someone’s eyes. Another not so common but weird is insuring a game of golf. They have a hole-in-one prize. Anyone who scores a shot is awarded a prize which can be cash, an automobile, a video or anything. There are many other strings to the bow and many companies think of such things. They do not lose money, in fact they and the people insured have all the publicity they want. Hence it can be worth it. For both, the insurer and the insured.
Kidnapping youngsters and even adults has become so frequent that the well to do people are buying insurance against kidnapping and ransom. People working at high risk jobs also buy insurance. These policies are held by businessmen who work in dangerous areas and they offer indemnity coverage for any loss incurred by whoever pays the ransom. This includes the ransom money, money lost in transit, expenses incurred while delivering the ransom, hiring of professionals like negotiators and rewards offered for the safe return of the victims.
Lloyd’s of London has sold insurance policies against the oddest of demands. They have sold policies for vampire bites, werewolf attacks, alien abduction and the like. There are more than 400,000 policies sold to insure against alien abduction. If you can prove it (pass a lie detector test or have a video or a witness to support the claim of being kidnapped by an alien) then compensation of one million pounds will be given by the insurance company!
Life Insurance Guide
When you plan to get life insurance or any insurance for that matter, it is best if you are equipped with some knowledge of the terms used in the policy so that you are aware of what you are paying for.
Policy This is the term for a contract between an insurance company and a purchaser of life insurance.
Insured The usual term for a person who purchases life insurance on themselves. The insured could also be a close family member of the purchaser.
Beneficiary This is the person or entity (school, foundation, etc.) that will receive the benefits of the insured’s policy at their death.
Insurance Company the legal business permitted to issue a life insurance policy.
Premium the periodic charge for the insurance policy. Can be anywhere from one lump sum to years of monthly payments.
Coverage the terms of the policy as agreed to between purchaser and insurance company.
Permanent Policy life insurance that remains in force until insured dies, as long as the premiums are paid as agreed. (Usually for 10 years, 20 years or until age 65) This type of policy may also be called limited pay insurance.
Term Policy a life insurance policy issued for a definite number of years to provide payment for a mortgage, etc. At end of that time period, the policy is cancelled.
Endowment Policy A policy issued for the purpose of providing a lump sum or periodic payments to a beneficiary.
Final Expense Insurance a policy set up to pay for the funeral expenses when a person dies. In many cases the insured signs up with a funeral home for a pre-funded policy. Also call a pre-need policy.
Group Life Insurance life insurance provided to members of a group without regard to the usual health status questions. There is often a provision for a member who leaves the group to continue with the life insurance coverage.
Whole Life Policy This is an insurance policy in which the premiums are paid for the whole life of the insured. This policy has a guaranteed cash value that can be borrowed.
Modified Whole Life Policy an insurance policy in which the premiums start artificially low and then are raised after an agreed upon time limit.
Single Premium Whole Life Policy a policy featuring a single lump sum payment at the time the policy is issued.
Joint Life This is a policy insuring two or more persons. The payments are payable at the first death of those insured.
Rider special provisions added to a standard life insurance policy.
Double Indemnity a rider to a life insurance policy that provides for payment at twice the face value of the policy in event of an accidental death.
Insurability the various factors about the proposed insured that insurance companies will risk. Basic health conditions, lifestyle, family, substance use, etc. are all factors to be considered. These form the basis for the terms and premium of a policy.
Universal Life Coverage A new style policy that features death benefits, a flexible premium, and a cash account which can add to the face value of the policy.
While this list compiles the most common terms, there are others of interest. Check with your insurance provider for more information.
Life Insurance Guide
There are some milestones in life when it is a good idea to consider buying life insurance. Some of these times are when a marriage, a new home or a child becomes part of your life. Here are some tips that may help make this step easier.
First it is time to assess the needs for life insurance. For instance, look at the protection needed to be sure the home mortgage will be paid, so the family home remains secure in the event of an untimely death. You may want to purchase a paid for life policy. In that policy the premiums are pre-set for a definite number of years, after which the policy remains in force until the insured dies.
Second, buying life insurance at a younger age is dramatically less expensive. A young healthy active person may think life insurance is a low priority when compared with other expenditures. Time passes swiftly and soon it is time to send a child to college. You can use life insurance as an endowment policy to help with tuition.
Life insurance has many options. Besides paying off a mortgage, life insurance can be used to finance major expenses like college, by purchasing a policy that has a cash fund from which to borrow. You are borrowing from yourself, from premiums you paid in and can pay back or not. The cash you borrowed will be deducted from the face value of the policy if you do not choose to pay it back.
Once you have decided which of your needs to plan for, begin talking to insurance companies to assess the different policies they offer. Compare the premiums charged for term versus whole life. Do they combine life insurance with other insurance policies and do they have written information on their policies.
Go online and get some quotes so you can compare the different insurance company policies. Be sure to investigate the insurance company also. You will want to know how long they have been in business, how many complaints they have against them, (check with the Better Business Bureau), are they licensed to offer insurance in your state, how do they handle premium payments and what are their health requirements for the insured. Be careful about allowing payments directly from your checking account. It is easy to find yourself overdrawn.
Contact one or more of the independent insurance agents locally and invite them for an informal insurance discussion. They will be thrilled to tell you all about the policies they have for sale. The agent may represent several of the major companies, such as the Prudential and Metropolitan.
If you are a member of an organization, such as AARP (American Association of Retired Persons), you will get regular offers in the mail for life insurance. Their recommended company is Hartford. Since you must be 55 years old or older to become a member, be assured that the cost is going to be higher for less coverage.
Life Insurance Guide
The various life insurance policies cover nearly every aspect of life. The simplest are straightforward. That would be a permanent policy, paid for a period of 10 or 20 years, which remains in force until the insured person dies. Premiums for this type of policy usually are lowest when the insured person is young. This type of policy can be purchased at any age, but will have a premium twice as high for middle aged people compared to that charged for a young person under 25. Quite often it is purchased with the intention of using the pay out to pay for funeral expenses.
Somewhat more complicated are the policies that continue to collect a premium for the entire life of the insured. Included in this policy can be several features. One of the more attractive features is a cash account that can be borrowed from by the owner of the policy. The cash account is over and above the face value of the insurance policy.
A more common life insurance is the term policy. With a term policy an agreement is reached to provide a definite benefit, such as $200,000 for a set period, such as 25 years, at a premium that does not change over time. Such policies are often used to guarantee the payment of a home mortgage in the event of the policy owner’s death. At the end of the time period, the insurance ceases. No money is paid to the policy owner’s beneficiary unless the insured dies during the time the policy is in force.
These are the three main types that most people invest in. From here on, the policies become more complex. Just one example is the universal life insurance. This is a newer style of policy that has flexible premiums. The premiums are paid into a cash account that is invested in ways that result in higher interest rates. The policy owner can opt to use the interest generated to actually pay the premium for one or more months or can add it to the cash value of the policy. When interest rates are low, the policy owner may have to pay a higher premium to compensate for that. The cash account can also be borrowed from. The cash account also can be charged for administrative expenses of the fund.
There are also life insurance annuity policies that pay a monthly or quarterly sum after a certain age to supplement other retirement benefits. There are life insurance policies that allow the purchaser to share in the profits of the insurance company by either adding to the face value of the policy or accepting deposits into a cash account. There are even viatical settlements where a terminally ill person can elect to sell their policy for a percentage of the face value in return for a cash lump sum. The purchaser will gain the option to name a beneficiary and also collect the full face value amount when the terminally ill person dies.
Comparing the policies offered and matching these to individual needs takes some time but is very important.
Life Insurance Guide
20 Year Life or Whole life
Many years ago insurance companies offered a very low cost life insurance that was called 20 Year Pay Up Life. A policy was developed that would pay upon the death of the insured for a specific amount, such as $1,000. The beneficiary could also be the person who purchased the life insurance policy, such as a parent for a child. They would pay a very nominal amount each month for 20 years. The premium was typically about $1.00 a month. At that point the policy was considered paid in full. They would have paid $240.00 in total, at that rate. The insurance company would invest the premiums paid in the hope that when the policy was due, there would have been sufficient interest accrued to pay the claim, plus insurance agency costs.
Parents and grandparents quite often would purchase small policies to help with funeral expenses if the child were to die. This type of policy had a cash value and could be borrowed against. As the length the policy is in force beyond the 20 years, interest accrual adds to the value so when benefits are paid eventually the total amount can be substantially higher than the original policy limit. Variations on the policy were 10 year pay and paid in full after age 65. The type of policy is categorized as permanent life insurance.
Term Life Insurance
This is a life insurance policy which will be in force for a specific term, or length of time.
The premiums are usually low for a large amount of coverage, such as $9.00 per month for $200,000 coverage. Policies of this type were often purchased to provide for a mortgage repayment in the event of the insured’s death. The low rate for high coverage reflects the very low risk that the insured was actually going to die during the length of time the policy was in force. At the end of the agreed upon length of time, the insurance is no longer in force and no more premiums are paid.
Universal Life Insurance
This is a new style life insurance policy with flexible premiums, due to the fact that premiums are paid into a cash account that pays a higher rate of interest. If the interest on the funds already paid is high during good market times, the interest can be used to pay the premium. If the market is poor with low interest rates, the premium will be higher. The cash account can be borrowed from by the insured, and then he ‘pays back’ himself with a higher premium. Additionally the universal life policy provides the insured with 2 options for pay out. Option A will pay the face value of the policy at death. Option B allows the insurance agency to pay the face value plus the cash account at death. For example, the face value may be $10,000 but the cash account could be double that amount.
Life Insurance Guide
Permanent Life Insurance
Life insurance is typically used to relieve the insured person’s beneficiaries of financial burdens such as expenses for a funeral or to pay off mortgages and other debts. That is probably the use put to three quarters of all life insurance policies. That is the simplest life insurance policy that is currently being offered. It is referred to as permanent life insurance because as long as the premiums are paid, it cannot be canceled by the insurance company. The policy will remain in force until the insured person dies.
Benefits of life insurance policies can be applied in different ways. A life insurance policy can be an endowment. In this case the term (time policy is in force before payment is due) is usually shorter and the premiums higher. When the premiums paid in equal the face value of the policy, the insured can designate that payments be made to the beneficiary whether the insured lives or dies. Payments can be a lump sum or another payment schedule designated by the insured. An endowment policy can be a way of increasing income at a time of life when pensions are not sufficient. It can also be a substitute for a pension.
In some cases life insurance policies may be purchased that are set up to share in the profits of the insurance company. In these cases the insurance policy increases in value as the share of the profits is added to value of the policy. The premise here is that as the collective premiums from all policy holders are invested a profit will be realized.
This is a relatively new development in life insurance in the last 20 years or so. In this case a permanent life insurance policy is purchased from the insured, along with the right to name a beneficiary, at a discounted amount of the policy value. The purchaser would continue to pay the premiums until the insured dies. The insured person benefits by receiving a lump sum payment from the purchaser. That way they can pay living expenses and medical bills during their last days or weeks of life. Viatical settlements are commonly used in cases of terminal illness, such as cancer or AIDS, where the insured person has a strong need for support and limited options. The purchaser will become the beneficiary of the policy, receiving the lump sum payment back plus the portion of the policy that was discounted to the insured. For example, if the purchaser paid the insured 65% of the face value of the policy, he would receive the additional 35% upon the death of the insured.
This use of life insurance dismays the insurance companies because their claims payments are based not only on those policies that stay in force, but also those who cancel by not paying their premiums (the premiums paid stay with the insurance company) and some that will cash out their policies prior to maturity. With a viatical settlement, all claims will proceed to maturity and have to be paid.
Life Insurance Guide
Life insurance is a contract between an individual and an insurance company. The individual agrees to pay a certain fee every month to the insurance company. In return the insurance company agrees to pay the beneficiary named by the individual a lump sum upon the individual’s death. The premise is that the individual will not have paid the insurance company as much money as the insurance company will pay the beneficiary.
If a person would suffer great loss upon the death of a spouse (or close relative), that person may purchase a life insurance policy on the spouse’s life. As the purchaser, this person would be the one to pay the premiums. This person would also be the beneficiary of the insurance policy. They are determined to have an ‘insurable interest’. Life insurance companies limit policies available to this type of situation so that a person cannot just go out and buy insurance on the life of someone they know will soon die. Otherwise there is a great risk that the beneficiary would simply murder the insured person for the money.
The amount of money that the insurance company will pay is predetermined. The policy may specify that at the time of death, they will pay the beneficiary $125,000. The policy may also state that if the insured is still alive at a certain age, say 100 years, the policy would pay out the policy sum to the beneficiary. The policy also includes special provisions, such as no payment will be made to the beneficiary if the insured commits suicide. That provision usually is satisfied if no suicide happens for two years after the initiation of the policy. The policy can also be nullified if the insured makes false representations, such as claiming to have no chronic health conditions.
Insurance companies base the amount they charge for the life insurance policy on actuary tables that predict how long the insured will probably live. Three important factors are age, gender and use of substances like tobacco or alcohol. In addition, the insurance company will ask about current health conditions and family history. Usually the insurance company requests permission to contact the insured’s personal physician. Premiums (charges) for the policy increase as the age of the insured increases.
The most common reason for purchasing life insurance is to provide financial assistance to the family members when the insured dies. Expenses for a funeral are typically the first thing to be taken care of. Then there are personal debts that must be repaid. After that, the family members who no longer benefit from the paycheck of the insured, will have the policy that will attempt to compensate them for their loss.
Life insurance companies typically use the monthly premiums as a vehicle for investment to make it possible to pay the claims of those who die unexpectedly and to produce an income to pay wages, overhead and profit. The monthly premiums collected cannot come near being able to pay the claims otherwise.